ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has issued draft Sharia advisors regulations 2017. A non-filer of income tax return will not be eligible to become a Sharia advisor or a director or a partner of a Sharia advisor.
The regulator defined the eligibility criteria for becoming a Sharia advisor. An individual shall be ineligible to become a Shariah advisor or a director or a partner of a Shariah advisor if he-
(a) is a minor;
(b) is of unsound mind;
(c) has applied to be adjudicated as an insolvent and his application is pending;
(d) is an undischarged insolvent;
(e) has been convicted by a court of law for an offence involving moral turpitude;
(f) has been debarred from holding such office under any provision of any law administered by the Commission;
(g) is lacking fiduciary behavior and a declaration to this effect has been made by the court at any time during the preceding five years;
(h) has been declared by a court of competent jurisdiction as defaulter in repayment of loan to a financial institution;
(i) in case of a Pakistani national, is not a tax filer with the Federal Board of Revenue;
(j) in case of foreign national, is not a registered tax payer, if applicable, in respective jurisdiction of residence or nationality;
(k) has been convicted of any criminal offence involving fraud, negligence or criminal breach of trust and financial impropriety;
(l) does not have a good reputation of ethical professional and social conduct befitting a Shariah advisor as judged by the Commission; or
(m) has an adverse Credit Information Bureau (CIB) report.
Explanation. – For the purposes of these regulations,
(i) In case of overdue payment to any financial institution, CIB report from the State Bank of Pakistan shall be examined and if there is any overdue/past due payment to a financial institution, irrespective of amount, the relevant person shall not be considered fit and proper person except in case where, such overdue amount is under litigation and the same is also appearing as amount under litigation in CIB report or no overdue payment is appearing in the overdue column in the subsequent latest CIB report;
(ii) In case of any amount appearing in the overdue/write-off column of the CIB report, no rejection shall be made unless the person has been provided an opportunity of making a representation before the Commission.
